Why Indian space start-ups are against auctioning of satellite spectrum

Essentially, satellite spectrum is a specific part of the radio frequency spectrum allocated for satellite communication. It is used by satellites to transmit and receive signals for various purposes including television broadcasting (direct to home), global positioning systems (GPS) mobile networks, wireless internet, and more.

How is it different from terrestrial spectrum?

Unlike terrestrial spectrum which refers to the frequency range used for various land-based wireless communication systems, such as cellular networks (3G/4G/5G), Wi-FI and broadcasting, satellite spectrum works a little differently.

Satellite communication involves multiple countries and regions and is not confined to national borders. That is because satellites can provide coverage over vast areas, including continents.

Therefore, unlike terrestrial spectrum where a national regulation is enough to lay down its modalities for spectrum allocation and auction, satellite spectrum requires international coordination. In this regard, the International Telecommunication Union (ITU) plays a significant role in the allocation, coordination, and management of satellite spectrum on a global scale.

What is “co-existence” in satellite spectrum?

Unlike terrestrial spectrum, where the same frequency range cannot be used by two or more service providers (hence, the need for auctions of 2G, 3G, 4G and 5G spectrums) in the same geographical area, satellite spectrum can be used simultaneously by multiple service providers at the same time.  This is also called “co-existence”.

“The term ‘flexible use’ of spectrum in a frequency range is used to connote the use of a frequency range by the same service provider for offering more than one type of service,” TRAI said in a consultation paper.

What are the popular satellite spectrum bands and what are they used for?

The popular frequency bands used for providing satellite communication services and their usages are:

• L-band: Mobile satellite services (MSS) and GPS navigation signals


• S-band: Weather and air traffic control applications


• C-band: Fixed satellite services (FSS) such as television and radio broadcasting, telephony, and data transmission


• Ku-band: Both FSS and MSS; commonly used for direct-to-home (DTH) television broadcasting and satellite internet services


• Ka-band: Commonly used for high-speed broadband.

Grounded in ITU’s Radio Regulations, the government drew up the National Frequency Allocation Plan 2022, which talks about allocation of radio-frequency spectrum (including satellite spectrum) to different radio-communication services.

However, before any part of the spectrum is used in India, a TRAI consultation paper explained that permissions are required from the Ministry of Communications’ Wireless Planning and Coordination Wing (WPC Wing). Additionally, based on the use case of the satellite, permissions are also required from the Ministry of Communications (MoC) and Ministry of Information and Broadcasting (MIB).

However, since signals are sent to and fro from satellites in space, the government also has to follow procedures laid down by the ITU for managing orbit-spectrum resources.

What is the rationale for the government's call for auctioning space spectrum in India?

India wants to be the first country in the world to auction satellite spectrum. “It is envisaged to auction the Space Spectrum on an exclusive basis,” TRAI said in a consultation paper.

While no explicit reasoning is provided by the government for the auctioning of satellite spectrum, service providers such as Reliance Jio and Vodafone want satellite spectrum to be auctioned to “provide a competitive landscape among rivals”, an ET report said.

What does TRAI say for ensuring “exclusivity” in satellite spectrum?

There are a few bands of satellite spectrum which cannot be reused, where by auctioning and thereafter assigning the same, exclusivity can be easily achieved.

However, complexity arises because some satellite spectrum bands are shareable and can be reused.

“In case frequency spectrum is assigned to space-based service providers on an exclusive basis, the same frequency range cannot be assigned to other service providers. Therefore, there may be a need to explain what exclusive spectrum assignment means for satellite communication services… ,” TRAI said in a consultation paper released on April 6.

“For exclusive assignment of spectrum, there may be a need to prescribe the block size, minimum number of blocks per licensee and maximum number of blocks per licensee (spectrum cap), roll-out obligations, etc. However, in case some spectrum cap is prescribed, the service licensees may not be able to utilise the entire capacity of the satellite system,” TRAI said.

However, due to these complexities, and since exclusivity could also mean others losing out on using the spectrum, TRAI has also proposed some models of sharing (which again goes against the idea of exclusivity).

“Therefore, there may be a need to permit intra-band spectrum sharing among the licensees holding spectrum. In its reference, DoT has also envisaged to permit sharing of frequency spectrum,” TRAI said.

Why are space start-ups opposing this?

“All space start-ups that participated in the (TRAI) consultation expressed their opposition to the auction…,” IsPA, the industry body with over 30 space start-ups, said.

The body has opposed TRAI’s plans to auction the satellite spectrum due to various reasons. They argue:

• That since satellite spectrum is a shared resource, auctioning spectrum can distort its utility.


• Since the government has also proposed some sharing mechanism despite the auction, “auctioning spectrum and then creating a sharing mechanism is self-defeating”.

How much will it impact start-ups?

Satellite spectrum auctions can create a significant financial barrier to entry for start-ups. The cost of acquiring such licences can be substantial, and start-ups face challenges in raising necessary funds to participate in such auctions.

Globally, has satellite spectrum ever been auctioned? 

No. However, in Thailand, the government auctioned orbital slots, which are used to assign orbits to satellite operators – an important component of satellite communications.

What are Indian space start-ups proposing as an alternative to auction?

Space start-ups point towards the international nature of satellite spectrum, and the role ITU plays in its regulation.

“The national spectrum assignment, while a domestic process, must be conducted in harmony with the international framework provided by the ITU. This will ensure smooth and efficient usage of radio-frequency spectrum on a global scale, preventing interference, and enabling the satellite industry to provide reliable services across borders,” IsPA said.

“Ignoring this integral role of ITU in the broader spectrum management framework is indicative of a limited understanding of the complexities of global radio-frequency spectrum management, especially in relation to the satellite industry,” it added.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.